Automotive IoT

Automotive IoT

Global Automotive IoT Market to Reach US$593.4 Billion by 2030

The global market for Automotive IoT estimated at US$145.7 Billion in the year 2023, is expected to reach US$593.4 Billion by 2030, growing at a CAGR of 22.2% over the analysis period 2023-2030. Embedded IoT, one of the segments analyzed in the report, is expected to record a 20.0% CAGR and reach US$226.9 Billion by the end of the analysis period. Growth in the Tethered IoT segment is estimated at 23.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$41.4 Billion While China is Forecast to Grow at 21.6% CAGR

The Automotive IoT market in the U.S. is estimated at US$41.4 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$91.4 Billion by the year 2030 trailing a CAGR of 21.6% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 19.4% and 18.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 15.5% CAGR.

Global Automotive IoT Market - Key Trends and Drivers Summarized

What Is Driving the Rapid Adoption of IoT in Automotives?

Automotive IoT, or the Internet of Things in the automotive industry, has quickly become a transformative force, reshaping how vehicles are manufactured, driven, and maintained. With IoT, vehicles can now connect with other devices, allowing seamless communication with infrastructure, other vehicles, and even pedestrians, making way for smarter, safer, and more efficient transportation systems. IoT-enabled sensors, telematics, and onboard diagnostics gather data on everything from tire pressure and fuel consumption to engine performance and brake wear, providing insights that improve vehicle reliability and longevity. This connectivity also allows for over-the-air (OTA) updates, enabling manufacturers to remotely fix software issues and improve vehicle functionality without a physical service appointment. IoT’s potential to improve fleet management, reduce fuel consumption, and enhance vehicle safety is transforming the automotive landscape, enabling a more integrated and data-driven approach to vehicle operations and maintenance.

How Are IoT Advancements Redefining the Driving Experience?

Recent advancements in IoT technology are redefining what drivers and passengers can expect from their vehicles, enhancing convenience, comfort, and safety through connectivity. IoT has introduced real-time navigation, predictive maintenance alerts, and even personalized entertainment experiences, making each journey more tailored and enjoyable. For instance, connected infotainment systems now allow users to stream music, access smart assistants, and receive real-time updates on traffic and weather conditions. Safety, however, remains a key focus, with IoT-enabled features such as collision detection, lane-keeping assistance, and emergency braking becoming increasingly common in modern vehicles. Additionally, IoT-enabled vehicle-to-everything (V2X) communication technology lets cars share information with other vehicles, infrastructure, and pedestrians, reducing accidents and easing traffic congestion. This interconnectedness contributes not only to a safer driving experience but also to a smoother, more convenient one, where cars act as intelligent partners on the road, anticipating and responding to a driver’s needs.

What Are the Emerging Trends in Automotive IoT?

As automotive IoT evolves, new trends are emerging that reflect broader shifts in consumer expectations, technological advancements, and industry priorities. One significant trend is the integration of AI and machine learning into IoT systems, enabling vehicles to learn from driver behavior and make autonomous decisions based on real-time data. This has led to progress in autonomous driving, where IoT sensors and machine learning algorithms work together to help vehicles navigate and respond to road conditions without human intervention. Additionally, there is a growing trend toward increased data privacy and security measures, as the connectivity in vehicles raises concerns about data vulnerabilities. Automotive companies are investing heavily in cybersecurity measures to protect sensitive user data and prevent hacking attempts on connected vehicles. Another emerging trend is the rise of shared mobility services, such as ride-sharing and vehicle-sharing platforms, where IoT plays a crucial role in tracking vehicle usage, maintenance, and availability. These trends highlight a shift towards a more intelligent, secure, and user-centric automotive IoT ecosystem, paving the way for future innovations that will continue to transform the driving experience.

What Are the Main Drivers of Growth in the Automotive IoT Market?

The growth in the automotive IoT market is driven by several factors, each playing a critical role in expanding the scope and application of IoT in vehicles. A primary driver is the increased consumer demand for convenience, connectivity, and safety, which IoT-enabled features directly address. Technological advances, such as 5G and edge computing, have also accelerated IoT’s integration into vehicles by enabling faster, more reliable connections that support real-time data processing. This capability is crucial for applications like autonomous driving, where split-second decision-making can mean the difference between safe navigation and accidents. Additionally, a surge in demand for electric and autonomous vehicles has boosted IoT adoption, as these vehicles rely heavily on IoT systems for everything from battery management to self-driving capabilities. Regulatory requirements also drive market growth, as governments worldwide implement policies aimed at improving vehicle safety and reducing emissions, both of which IoT-enabled systems can help achieve. Finally, the growing popularity of fleet management services, particularly in logistics and transportation sectors, has led companies to adopt IoT for real-time vehicle tracking, maintenance, and fuel efficiency improvements. These factors collectively underscore a robust growth trajectory for the automotive IoT market, supported by evolving technology, regulatory frameworks, and changing consumer expectations for a smarter, safer, and more connected driving experience.

SCOPE OF STUDY:

The report analyzes the Automotive IoT market in terms of US$ Million by the following Application; Communication Type; Form Factor, and Geographic Regions/Countries:

Segments:
Form Factor (Embedded, Tethered, Integrated); Communication Type (In-Vehicle Communication, Vehicle-to-Vehicle Communication, Vehicle-to-Infrastructure Communication); Application (Infotainment, Navigation, Telematics)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 41 Featured) -

• Apple, Inc.
• AT&T Inc.
• Audi AG
• Cisco Systems, Inc.
• Ford Motor Company
• General Motors
• Google Inc.
• Intel Corporation.
• International Business Machines Corporation
• Microsoft Corporation

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